In March 2020, a federal court issued a decision in a nationwide class action, Alexander v. Azar, finding that certain Medicare beneficiaries who are admitted as hospital inpatients, but then reclassified as outpatients receiving observation services (also known as “observation status”), have the right to appeal to Medicare for coverage as hospital inpatients. A federal appeals court affirmed the decision in January 2022.
Medicare released the final regulations implementing the court’s decision in October 2024.
The Center has posted answers to frequently asked questions about the decision here, including why the issue is significant, who gained the right to appeal under the court’s decision, and who may wish to appeal. We also recommend signing up for our Alerts to receive news about significant developments as the decision is implemented, and about observation status in general.